Schibsted%20acquires%20selected%20assets%20of%20Trader%20Classified%20Media

1
Schibsted acquires selected assets of Trader
Classified Media

• Kjell Aamot CEO

Trond Berger CFO Sverre Munck EVP Schibsted
International Didier Breton COO Trader Classified
Media
2
Schibsted acquires selected assets of Trader
Classified Media

• Acquisition of selected assets in Spain (incl.
  Latin America), France, Italy and Switzerland for
  EUR 580 million
• Leading positions within on- and offline
  classifieds particularly in Spain, France and
  Italy
• Attractive online position in Spain strong
  brands acquired
• Schibsted has leading edge competence within
  classifieds online
• Acquired assets provide solid platform for
  further growth development of new media
  concepts in core markets
• Consistent with Schibsteds strategy to become a
  leading player within classifieds in Europe

3
Transaction summary

• Schibsted acquires Trader Western European assets
• Spain (including Infojobs and Latin America),
  Italy, Switzerland and France
• Purchase price of EUR 580 million on a debt-free,
  cash-free basis
• All cash transaction funded by debt at Schibsted
  level
• Transaction closing conditional upon approval
  from Spanish competition authorities and Trader
  shareholder vote
• Closing expected around mid-July
• There is a strong financial rationale for the
  acquisition
• Increases Schibsted revenue and EBITDA growth
• Positive financial impact EPS accretive over
  time, positive impact on margins
• Pro forma net debt / EBITDA of 3.5x LTM based on
  Q1

• Note Overview over assets acquired at page 25 in
  the appendix

4
Trader Western European assets are attractive to
Schibsted
Key Facts

• Main presence in Spain, France and Italy
  smaller operations in Switzerland and Latin
  America
• Classifieds within vehicle, real estate,
  recruitment and general merchandise on print and
  internet
• 209 publications and 27 websites 5.5 million
  unique visitors per month¹
• Operating revenues of EUR 186 million and
  operating profit (EBITDA) of EUR 40 million in
  2005
• Y-on-y revenue growth of 10 of which 9 organic
  growth in Q1 2006
• Over 2,200 employees by year-end 2005
• Strong brands and strong positions in emerging
  online market space
• Business in transition from offline to online
• Free niche products on print less vulnerable to
  online migration
• Profitable and well-run companies
• Large sales forces and established advertiser
  relations

Our view
¹ As of March, 2006 Source Nielsen Netrating
5
Schibsted has leading edge competence within
classifieds

• Strong position both offline and online in Norway
• Successfully migrated from offline to online
• Maintained cash flows offline within key segments
• Acquired and successfully managed online players
  in Sweden
• Launched online classifieds in Spain, France and
  Austria with success
• Strong products both within verticals (vehicle,
  real estate, recruitment) and general merchandise
• Experienced in both business-to-consumer and
  consumer-to-consumer
• Experience and organisation in place for
  transferring our Scandinavian competence abroad

6
Schibsteds online classifieds

• 1 in Norway - clear leader in recruitment, real
  estate, vehicles and general merchandise
• Revenues of NOK 267 million and operating profit
  (EBITA) of NOK 114 million in 2005

• Blocket - 1 in general merchandise in Sweden
  BytBil leading within vehicles
• Revenues of NOK 178 million and operating profit
  (EBITA) of NOK 73 million in 2005

• 2 in general merchandise in Spain
• Started in March 2005 strong development in
  unique visitors

• General merchandise in France
• Started in April 2006 - development according to
  plan

• General merchandise, recruitment, cars and real
  estate in Austria
• Started in January 2006 - development according
  to plan

7
This is the optimal time to expand into Europe
Online household penetration in continental
Europe is behind the Nordic region ()
..online advertising is still to take off
(online advertising per capita in EUR)
Sweden
Norway
France
Spain
Timing is now

• Online advertising is still in an early stage
  important lessons from Scandinavia could be
  transferred
• Leading online positions to be taken in key
  markets print assets of Trader Western Europe a
  good starting point

Source Jupiter Research, IRM Note Online
advertising is per capita (2004)
8
Revenue distribution of acquired assets
2005 figures, 100 EUR 186 million
Latin America
Circulation
Italy and
Switzerland
Offline ads
Online
Spain
France

• Main presence in Spain and France
• Schibsted has strong knowledge of media markets
  in Spain and France

• Less dependent on circulation revenues
• Online part of revenues significant

9
Strong sales and EBITDA growth for acquired
assets especially online
Figures in EUR million
CAGR 20032005
Total 17.3
Sales
Online 63.5
Print 10.0
Total 14.4
EBITDA
Online 70.3
Print -2.7
Print
Online
Note Includes acquisitions over time, InfoJobs
acquired in 2004
10
Specialised print assets less vulnerable to
online migration

• Trader Western European print assets have strong
  positions within niche segments
• Internet puts pressure on circulation dependent
  on internet maturity
• Generalist titles most vulnerable pure
  marketplace function
• Niche titles more stable more valued as
  entertainment

11
Key brands and products acquired
Spain Latin America France Italy Switzerland
Generalist
Vehicles
Real estate
Recruitment
Other
12
Schibsted becomes leading player within
classifieds in Spain and France

• Clear market leader within recruitment online

• 1 general merchandise online
• Over 700,000 unique visitors in March 2006

Spain

• 1 general merchandise on print
• Free ads and paid circulation
• Mostly C2C

• Leading in vehicles offline - 2 online
• Paid ads and paid circulation for paper edition
• Both C2C and B2C

• General merchandise both offline and online
• Free ads and paid circulation
• Mostly C2C

France

• 1 in boats offline and online
• Paid ads and paid/free circulation
• Mostly B2C

• Source Trader Information, Nielsen Netrating

13
- leading recruitment site in Spain

• Top of Mind career site for job seekers and
  advertisers in Spain
• 1.2 million unique visitors in April 2006
• The 4th most visited commercial online
  recruitment property in Europe in March 2006
• Operating revenues of EUR 12.6 million in 2005
  and operating profit (EBITDA) of EUR 4.7 million
  in 2005 EBITDA margin of 37.5
• Y-on-y revenue growth of 142 and y-on-y growth
  in EBITDA of 227 in 2005
• Among most popular search words on Google Spain
• 160,000 employment offers, 62,000 employers
  offering jobs and 3.1 million CVs¹
• 60 stake acquired by Trader in 2004 call
  option on the remainder capped at EUR 25 million

• Source Company Information, Nielsen Netrating,
  ComScore
• ¹ As of June 2nd, 2006

14
Resulting strong online position in Spain
Percentage reach of unique visitors online monthly

1. Nielsen Netrating, March 2006. Home panel for
   Spain, Home Work for France and Italy.
2. Unduplicated monthly reach and unique visitors

15
Schibsted strengthened after the acquisition

• Leading pan-European player within classifieds -
  strong positions in Spain and France
• Operations in 18 countries
• Approx. 7,500 employees over 5,000 outside
  Norway
• Pro forma combined revenues in 2005 of NOK 11.3
  billion and EBITDA of NOK 1.4 billion
• Increased revenue growth (pro forma 2005)
• Online share of revenues increases from 8.7 to
  10.4 (pro forma 2005)
• Online share of EBITDA increases from 18 to 23
  (pro forma 2005)
• EBITDA-margin increases from 11.4 to 12.7 (pro
  forma 2005)
• Expected positive effect on EPS, operating
  margins and revenue growth going forward

16
Geographical revenue distribution
2005 figures, percent
Pre acquisition 100 NOK 9 832 million
Post acquisition 100 NOK 11 287 million
International
International
Norway
Sweden
Norway
Sweden
Exchange rate EUR 1 NOK 7.80
17
EBITDA margins increase after the acquisition
2005 figures, percent
Schibsted
Acquired assets
Pro forma combined

• Offline

Online
Total
18
Pro forma combined Income Statement
19
Capital structure and intangible assets
Note EUR 1 NOK 7.80. EBITDA including income
from associated companies.

• The acquisition will be financed through a new
  loan facility from DnB NOR and Nordea

The excess of the purchase price above the net
assets acquired is allocated to goodwill and
other intangible assets.
20
Pro forma combined Balance Sheet
21
Key focus going forward

• Key focus to become leading player online
• Maintain cash flows from offline business while
  transferring positions online
• Synergies with 20 Minutes operations mainly
  related to cooperation within classifieds online
• Cooperation and joint further development in
  Spain and France
• Brand development and marketing
• Technical platform and product development
• Cooperation between Schibsted International
  Classified Search and local management
• Strong local management crucial to build long
  term positions

22
Effect on Schibsteds strategy

• The acquisition will lead to reduced spending on
  organic growth
• Classifieds international make up approx. 30 of
  estimated spending on organic growth few new
  projects after acquisition
• Maintained estimate of NOK 300-400 million in
  negative EBITDA from organic growth in 2006
• Lower costs to organic growth in 2007
• General business development in Scandinavia will
  not be affected by acquisition
• Focus on editorial products as strong as ever
  acquired assets a platform for new editorial
  concepts

23
Schibsted acquires selected assets of Trader
Classified Media

• Acquisition of selected assets in Spain (incl.
  Latin America), France, Italy and Switzerland for
  EUR 580 million
• Leading positions within on- and offline
  classifieds particularly in Spain, France and
  Italy
• Attractive online position in Spain strong
  brands acquired
• Schibsted has leading edge competence within
  classifieds online
• Acquired assets provide solid platform for
  further growth development of new media
  concepts in core markets
• Consistent with Schibsteds strategy to become a
  leading player within classifieds in Europe

24
Appendices

• Details on Trader Western Europe
• Overview acquired assets
• Income statement and balance sheet Q1 2006 and
  2005
• Overview market presence
• Key assets on print and online
• Spain
• France
• Italy and Switzerland
• Latin America

25
Assets acquired

• Spain and Latin America 84 stake in Anuntis
  Segundamano Holdings Assets of Anuntis
  Segundamano Holdings include
• Spanish operations (including Segundamano)
• 60 stake in Infojobs (including EUR 25 million
  call-option for the remaining 40)
• Operations in Latin America Argentina, Brazil,
  Columbia, Mexico, Venezuela
• France 100 ownership in Trader Classified Media
  France
• La Centrale and Les Annonces du Bateau
• 50 joint-venture with Multimedia Communication
  MMC (JAnnonce)
• Italy Switzerland 100 stake in Editoriale
  Secondamano and Trader Classified Media
  Switzerland

26
Income statement and Balance Sheet Trader
Western Europe
27
Trader Western Europe has leading classified
operations in several countries
Spain Revenue EUR 82.8m EBITDA EUR
17.7m Publications 149 Websites 7
Infojobs Revenue EUR12.6m EBITDA EUR
4.7m Websites 1
Latin America1 9
Italy Switzerland 18
Spain 51
France 22
France Revenue EUR 40.4m EBITDA EUR
10.7m Publications 5 Websites 3
Italy Revenue EUR 32.0m EBITDA EUR
3.6m Publications 32 Websites 4
2005A revenue by geography (EUR 186 million)
Online 22
Switzerland Revenue EUR 2.0m EBITDA EUR
0.4m Publications 3 Websites 1
Latin America¹ Revenue EUR 16.7m EBITDA EUR
2.8m Publications 20 Websites 11
Print ex circulation 60
Circulation 18
2005A revenue Online vs. Print (EUR 186 million)
Note Financials for FY 2005 1. Includes
operations in Argentina, Brazil, Colombia,
Venezuela and Mexico
28
Print publications in Spain
Trader information as of 2005
Source Trader information
29
Online classifieds landscape Spain
Assets in pink are Trader Western European assets
asset in blue owned by Schibsted
Source Nielsen Netratings
30
Infojobs is the clear leader in Spain
More people go to Infojobs
Market share
Page views (monthly)
60,113
7,488
6,999
1,227
1,472
and they spend more time on infojob website
Time spent per person
Number of sessions per person
18 min 41 sec
4.22
3.18
2.46
8 min 4 sec
7 min 43 sec
1.74
1.29
2 min 15 sec
1 min 15 sec
Source Trader information
31
Print publications in France
Trader information as of 2005
Source Trader information
32
Online classifieds landscape France
Assets in pink are Trader Western European assets
asset in blue owned by Schibsted
Source Nielsen Netratings
33
Print publications in Italy and Switzerland
Trader information as of 2005
Source Trader information
34
Online classifieds landscape Italy
Assets in pink are Trader Western European assets
Source Nielsen Netratings
35
Overview Latin America

• Managed out of Spain
• Main brands
• Segundamano in Mexico Argentina
• Real estate vertical in Colombia
• Car publication in Argentina

Mexico 4 Publications 3 Websites
Colombia 9 Publications 2 Websites
Argentina 3 Publications 3 Websites
Venezuela 3 Publications 1 Websites
Brazil 1 Publications 2 Websites
Total 20 Publications 11 Websites
Source Trader information, as of March 2006